Riding the Wyckoff Wave

[gassah]

	Quote:	DbPhoenix
	Is there a Part 2?

Slave driver. Yes.

[DbPhoenix]

	Quote:	gassah
	Slave driver. Yes.

I'll do my version of it when you're done.

[BlowFish]

	Quote:	gassah
	Here's the Swing Strength: The difference in the prices squared divided by the difference in the number of Bars. E.g. Sqr(PriceNow - PriceLast) / (BarPosNow - BarPosLast)

This is kind of off topic, apologies. This strongly reminds me of something I read many years back. From memory it was by a poster called TheScientist who I thought posted on esignals forums. He was on ET but I dont think thats the source. It was a commentary on what he believed Gann was talking about when he talked about 'squaring price and time'. The main difference was that he used it to project a bar in the future where a turning point might be anticipated.

Anyway it piqued my curiosity however I could not locate the post. I wondered if anyone might have further information. Message me by all means to preserve the integrity of this thread. Looking set to become an excellent one (thread) at that.

Back to your normal programming.

[gassah]

	Quote:	DbPhoenix
	Does this help?

We can get a few more bars by selecting the largest chart size.

[gassah]

Stock Selection Part 2

W described "two processes of reasoning" for the selection of the best stocks: the deductive, or top down, and the inductive, or bottom up.

The deductive method first determines "the position and trend of the general market; then the position and trend of the various group averages; and finally the position and trend of individual issues."

The inductive method moves "from the particular to the general." He created a position sheet and assigned each stock a technical position, that is, was it bullish, bearish or neutral for both the short and intermediate terms. There would be multiple stocks for each group and at a glance you could determine the position and trend of the various groups, and the general market. At the appropriate time the best stocks would be selected from this sheet. I've included a .pdf by Hutson that explains it in more detail.

"Either approach is good by itself, though reasoning from the particular to the general requires the exercise of more skill and judgment and takes a little more time. It is best to employ both methods if possible, for then one will serve to check the other."

[gassah]

Stock Selection Part 3

Did W find the fundamentals of a company important?

On the one hand he makes the following statements in How I Trade and Invest in Stocks and Bonds (thanks, Jason).

"While in former years I usually began with a consideration of the trend of the market, and then passed to the choice of security, I now line the factors up in the following order:

(1) Long trend of the market.
(2) Nature and tendency of the industry.
(3) Trend of the selected company's affairs (toward improvement or contrary).
(4) Character and reputation of the management.
(5) Financial Position and earning power.
(6) Position in relation to the intermediate, i.e., the thirty to sixty-day swings.

"When all of the above prove up to my satisfaction I feel safe in making an investment. Of course, there are other considerations, but these are the most important."

On the other hand, from the course:

"I, therefore, claim that:

You need never read anything on the financial page of your newspaper except the table of stock prices and volumes.

You need pay no attention to the news, earnings, dividend rates or statements of corporations.

You need never study the financial or the business situation."

[DbPhoenix]

Since the above book predated the course by a number of years, he may have determined in the meantime that none of this is really necessary. Plus the '29 crash intervened.

In any case, all of this will sound strangely familiar to readers of Wm O'Neil. Now you know where he got it.

[Eiger]

	Quote:	gassah
	... Market Analyst makes it relatively easy. This chart shows the swings compared ...

Hi Nic,

Where does Market Analyst come from? Is is part of MP, or another software tool?

Thanks, Eiger

[gassah]

	Quote:	Eiger
	Where does Market Analyst come from? Is is part of MP, or another software tool?

It's a standalone software program for $1000 and has an MP module for $250 or so. http://www.market-analyst.com/

[gassah]

	Quote:	gassah
	It's a standalone software program for $1000 and has an MP module for $250 or so. http://www.market-analyst.com/

It also comes with the hard to find volume indicator MIDAS, that's embraced by Barros. See below for SPY. You can drop it from any swing high or up from any swing low. The program also comes with the Barros Swings that will point out different swing time frames on one chart.